IIPM Admission

Tuesday, July 03, 2007

Cashing in on monsoon land


“Customer retention and technology at an affordable price has worked wonders for us” – George John, CFO, Federal Bank

Bank The Federal Bankon Kerala; and take our word, you would never regret it. Banking without Kerala is like banking sans retail operations now-a-days, you will miss out on one of the most bankable and lucrative markets. So, what makes Kerala and Federal Bank so special? The fact that the ratio of deposits accounts to adult population in Kerala – a measure of financial deepening – is as high as 89%, as compared to an average figure of 59% for India. And Federal Bank, understands the above equation very well, thank you.

As the biggest private sector bank in Kerala, Federal Bank now wants to spread its wings outside the ‘monsoon & massage’ state. The bank started 30 branches in 2006, of which 10 were in Kerala and the rest outside. As far as bank’s strategy is concerned “Retail and SME funding is and will be the main focus of the bank in time to come,” George John, CFO, Federal Bank, told 4Ps B&M exclusively.

Federal Bank has also been aggressive to grab the share in NR (Non Resident) accounts of over two million Keralites that work outside India. In fact, after State Bank of Travancore, Federal Bank leads with Rs.48 billion in NRI deposits.

Further, technology and value added services have also been instrumental drivers at Federal Bank, while services at affordable prices is what is causing the customers rush at the bank these days.

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Source :
IIPM Editorial, 2007

IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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